Highlights

  • Hastings Technology Metals has completed the acquisition of a 49% interest in BZNM Co Ltd, owner of the Kabin Buri hydrometallurgical plant in Thailand.
  • The plant's target nameplate capacity has been lifted to about 12,000 tonnes per annum of Mixed Rare Earth Chloride (MREC), up from the original 6,000 tonnes per annum.
  • Total consideration is capped at US$15 million, including 23 million Hastings shares issued to Enuo Holdings.
  • Testing and commissioning are targeted for Q1 2027, with first production expected in Q2 2027, subject to successful commissioning.

Hastings Technology Metals Ltd (ASX:HAS) has completed its acquisition of a 49% interest in BZNM Co Ltd, the company that owns the Kabin Buri hydrometallurgical plant in Thailand. The transaction gives Hastings a direct foothold in rare earths processing, with the plant being upgraded to produce Mixed Rare Earth Chloride (MREC) at a larger scale than first planned.

Plant Upgrade and Production Timeline

The target nameplate capacity at Kabin Buri now stands at about 12,000 tonnes per annum of MREC, double the 6,000 tonnes per annum originally planned. Installation and upgrade works are scheduled from October 2026 to January 2027.

Testing and commissioning are targeted for the first quarter of 2027, and first production is targeted for the second quarter of 2027, subject to successful commissioning. The plant sits about 175 km from Laem Chabang Deep-Water Port, which supports export logistics. Hastings is also evaluating a longer-term expansion to around 36,000 tonnes per annum, subject to technical, commercial, funding and approval requirements.

Deal Structure and Feedstock Supply

Total consideration is capped at US$15 million. This includes a US$0.5 million cash deposit already paid, US$8.0 million in equity through the issue of 23,000,000 Hastings shares at A$0.50 each to Enuo Holdings, and a US$1.0 million commissioning payment due by 30 November 2026. The issued shares represent about 9% of enlarged share capital and are subject to a six-month restriction on sale without Hastings' consent.

The remaining US$5.5 million is deferred cash, payable in two instalments of US$3.0 million and US$2.5 million at the first and second anniversaries of commercial production. These payments depend on a production trigger, including saleable MREC meeting specifications and delivery to third-party customers under executed contracts.

On feedstock, a binding framework offtake agreement with Enuo Holdings provides a minimum of 10,000 tonnes per annum of monazite concentrate grading at least 54% TREO on a dry basis. The agreement runs for an initial two years with a one-year renewal option. Hastings is also in discussions with other feedstock suppliers and MREC customers across the US, Europe and Asia.

Path to Majority Ownership and Broader Portfolio

Hastings is preparing an application to Thailand's Board of Investment (BOI). If granted, BOI promotion could allow majority or full foreign ownership of BZNM, along with a corporate income tax exemption of up to 13 years, duty relief on machinery and certain raw materials, and easier work permits. Negotiations to lift the company's stake to 51% or more are underway, subject to agreement with other shareholders and regulatory approvals.

Beyond Thailand, Hastings holds a 40% interest in the Yangibana Rare Earths and Niobium Joint Venture, managed by Wyloo, which holds the remaining 60%. It also owns 100% of the Brockman project in Western Australia, where metallurgical test work is being carried out with Enuo Holdings. The company noted that financial projections in the announcement are unaudited management estimates and do not represent a profit forecast.

Key Takeaways

  • The completed 49% acquisition moves Hastings into downstream rare earths processing.
  • Kabin Buri's target capacity has doubled to about 12,000 tonnes per annum of MREC.
  • A binding framework offtake with Enuo Holdings supports minimum feedstock of 10,000 tonnes per annum of monazite concentrate.
  • Majority ownership depends on the BOI application, shareholder agreement and regulatory approvals.